Social Responsibility Of Companies
(A Case Study Of Shell Petroleum Development Company And Chevron)
In the realm of corporate dynamics, companies today are increasingly recognizing the significance of social responsibility. This paradigm shift stems from the growing awareness of the interconnectedness between businesses and the communities they operate in. The evolving expectations of stakeholders, encompassing customers, employees, and investors, have propelled companies to embrace a more socially conscious approach. From environmental sustainability initiatives to ethical labor practices, businesses are integrating diverse facets of social responsibility into their operations. This not only aligns with the prevailing societal values but also enhances the corporate reputation, fostering long-term sustainability. The question of how companies can effectively balance profitability with social responsibility has become a central discourse in contemporary business discourse, emphasizing the need for an ethical and socially aware business landscape.
The concept of social responsibility ahs generated a lot of controversy other the years although relatively new to the Nigerian society has continued to gain the attention of many school and businessmen. There is no general agreement on the other hand some executive and economic argue that the business of business is business to determine the relevance and extent of it’s adoption two oil forms SPDC and Chevron (Nig.) Ltd were selected for study this was in addition and opinions of community members in two Local Government Area Warri North and South in Delta State.
The study is this an attempt to have an insight to the extent to which SPPC and Chevron (Nig) Ltd one socially responsible to which they operation the data analysis revealed that while the two frame made one form of contribution or other most members of the communities selected were dissatisfied with their performance this is because the expectation of communities of oil producing companies have not been met.
The recommendation was that the firms should device an operations guide in the management amenities and members of the communities should be recruited during recruitment exercise.
Title page
Certification
Acknowledgement
Dedication.
Abstract
Table of content
List of table/chart.
CHAPTER ONE
INTRODUCTION
1.1 Background of the study.
1.2 Statements of the problem
1.3 Objective of the study.
1.4 Research hypothesis
1.5 Significance of the study
1.6 Scope of the study
1.7 Limitation of study
1.8 Operation definition of terms
CHAPTER TWO
LITERATURE REVIEW
2.1 The concept of social responsibility
2.2 Controversy over the concept
2.3.1 Argument for the concept
2.3.1 Argument against the assumption of social responsibility
2.4 Approaches to social responsibilities based on the motive of the enterprise
2.4.1 Social economic motive
2.4.2 Pure economic motive
2.4.3 Pure economic motive
2.5 Role of government in social responsibility
2.5.1 No social responsibilities
2.5.2 Unlimited social responsibility
2.5.3 Limited social responsibilities
2.6 Business social power
2.7 Theories of social responsibility
2.7.1 Classical market model
2.7.2 The managerial model
2.7.3 The social environment model
2.8 Legal consideration incorporate social responsibility
2.9 Other views
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Population sample and subject
3.2 Instrument
3.3 Research design
3.4 Procedure
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Data presentation
4.1 Date analysis
4.2 Testing of hypothesis
4.3 Summary of findings
CHAPTER FIVE
5.0 SUMMARY OF CONCLUSION AND RECOMMENDATION
5.2 Conclusion
5.3 Recommendation
5.4 Reference
5.5 Appendix
INTRODUCTION
1.1 BACKGROUND TO STUDY
Oil prospective began in Nigeria as Farback as 1908 when a German company the Nigerian as Bitumen corporation started exploration in Araomi Area of the present Ondo State their preening effort however ended with out break of the first would war 1914 in 1937 oil prospective resumed in Nigeria shell (B.P) was awarded the sole right covering the whole territory of Nigeria the activities were gain interrupted by the second world war but resumed in 1947 however it was not until 1958 that oil was discovered in commercial quantities at “Olobier mean port Harcourt (River State) after several years of search and an investment of our N30 million.
By 1961 other companies including chevron (Nigeria Ltd) had began exploration activities for oil in the on share and of shore area of Nigeria the exploration right which had formerly been granted to shell alone was now extended to the other companies in the line with the governments policy of increasing the pace of exploration in the country.
1.2 STATEMENT OF RESEARCH PROBLEM
The oil industry is a vital factor of the nation economy and it ahs been a source of blessing to the members of the communities where they operate.
The local communities and the oil companies are commonly involved in the issue of social responsibility perception to this issue by both parties differ a lot this is based on each groups preference motive values and aspiration which sometime result in conflict and misunderstanding.
In the area of operation of these oil companies the society see them as amerance and constantly balanced for the ammonites that beset contemporary life specially in the area of land and water pollution.
Much the industry is very important to Nigeria economy the process of oil exploration carries with it several environment hazards whose effect cannot be ignored the environment impact of the oil industry results form those activities and processes necessary for it successful operation.
Like every other company the oil industry has as its primary motive maximization of profit the communities on the other hand are increasing looking to the oil companies to provides water and electricity awards of educational scholarships employment to their community members and to involved in other community developments projects like roads bridges and canals which the consider to be right.
Apart from the economic life that is directly destroy in the process of oil production there is also the problem of oil spillage unfortunately entirely on the in habitants of the communities where these companies operate.
As a result of the untold hardship being experienced by the communities some of the inhabitant by to pressure claims for unnecessary demand in some cases it has resulted in demonstration by these communities and disruption of the activities of the oil firms which in effect some times strains the relationship between the two parties.
The problem that need to be evaluated include hoe oil companies are responding to the expectation of the communities in which the operate these must be since desired on the parts of responsible executive to win the respects of the general public by utilizing their power well but the question the oil companies through their actions showing that they are concerned and this strive to be socially responsible and are the they aware of their responsibility towards the society its on the height of the about that the study will try to evaluate the social responsibility performance of the oil companies.
1.3 OBJECTIVE OF THE STUDY
There are many types of social responsibilities accepted by oil companies this they do in term of polices and objective of their organization the objective of this study are.
a. To have on insight into social responsibility of oil companies in Delta State.
b. To examine the companies compensation pattern s against the demand of the communities in which operate
c. To examine the clams of the communities against companies
d. To examine how far these companies are able to meet the demands in the process of performing their social responsibility and the extent to which they are willing to go.
1.4 HYPOTHESIS
The communities perception of the shall are chevron corporate performance will be determined by the living standard of the people for the purpose of this study the following hypothesis of interest
H0: The operation of shall and chevron in the communities of it environment
does not encourage social responsibility on the part of the companies.
H1: The operation of shall and chevron in the communities of it environment
encourage social responsibility on the part of the companies.
H0: The operation of shell and chevron has no impact on the community on
its environment
H1: The operation of shell and chevron has an impact on the community in
its environment
1.5 SIGNIFICANCE OF THE STUDY
This study would help to determine the expected of the oil industrial in the communities where they operate as well as the local government and state levels and the study will also help to fill the gap and throw more light because no much literature has been written on the social responsibility of the industrial.
1.6 SCOPE OF THE STUDY
The scope of this study shall be limited to Delta state which compresses of Ugborod (escanves)in Warri North Local Government and Warri and Omadino in Warri South.
Chevron Nig. Ltd and shell petroleum development company (SPDC) will be chosen fro our case study this study is limited to the evaluation of the functions of the oil companies in social responsibility performance and try to point ouy what further needs to be done regarding it
1.7 LIMITATION OF THE STUDY
There is no doubt that in carrying out a research of this magnitude there will be problem prominent among them is the inadequate secondary material such as company’s bulleting and journals. Added to this is the non availability of desired textbook in the school library.
Furthermore the research was carried out at the time when academic work was at it peek therefore movement to and from Warri Delta State where the companies are located was restricted
Other constraints are inadequate finance at the disposal of the researcher due to the economic situation in Nigeria today. Also the communities were skeptical above the researcher intention and therefore become unco-operative this lead to non-completion and return of some of the questionnaires
1.8 OPERATIONAL DEFINITIONS TERMS
i. Social living in a community of society or its organization sociable
ii. Responsibility liable to be blamed for loss or failure for one’s action involving important duties.
iii. Social responsibility the obligation of decision maker to take action which protect and improve the welfare of the society as a whole along with their own interest.
v. Pollution the process of polluting or the state of being polluted.
vi. Community people living in one place
vii. Industry the making or production of thing in factories
viii. Company a group of people working to ether for business or commercial purpose a business organization.
ix. Environment nature condition
SHARE PROJECT MATERIALS ON:
Social responsibility of companies, often referred to as corporate social responsibility (CSR) or corporate citizenship, is the idea that businesses should go beyond their primary goal of making profits and actively contribute to the well-being of society. This concept involves integrating ethical, environmental, and social concerns into a company’s operations and decision-making processes. The social responsibility of companies encompasses a wide range of activities and initiatives aimed at making a positive impact on various stakeholders, including employees, communities, customers, and the environment. Here are some key aspects of the social responsibility of companies:
- Ethical Business Practices: Companies should conduct their business activities ethically, following principles of honesty, fairness, and integrity. This includes avoiding practices that could harm consumers, employees, competitors, or the environment.
- Environmental Sustainability: Companies have a responsibility to minimize their negative impact on the environment. This involves reducing greenhouse gas emissions, conserving resources, adopting sustainable production methods, and promoting recycling and waste reduction.
- Community Engagement: Companies should actively engage with and contribute to the communities in which they operate. This could involve supporting local charities, educational initiatives, infrastructure development, and other community-focused projects.
- Labor Practices: Ensuring fair and safe labor practices is crucial. This includes providing fair wages, safe working conditions, equal employment opportunities, and respecting the rights of workers to organize and bargain collectively.
- Supply Chain Responsibility: Companies should also consider the social and environmental practices of their suppliers. Ensuring that suppliers adhere to ethical and sustainable standards helps prevent negative impacts throughout the supply chain.
- Diversity and Inclusion: Embracing diversity and promoting inclusion within the company’s workforce is an important aspect of social responsibility. This involves providing equal opportunities regardless of gender, race, ethnicity, or other characteristics.
- Transparency and Accountability: Companies should be transparent about their CSR initiatives, goals, and progress. Regular reporting on social and environmental performance helps build trust with stakeholders and holds companies accountable for their commitments.
- Innovation for Social Good: Some companies engage in research and development projects aimed at addressing societal challenges, such as healthcare, education, poverty, and technology accessibility.
- Philanthropy and Volunteerism: Many companies engage in charitable giving and encourage their employees to participate in volunteer activities. This helps support nonprofit organizations and address pressing social issues.
- Stakeholder Engagement: Engaging with various stakeholders, including customers, investors, employees, and communities, is crucial for understanding their concerns and incorporating their feedback into the company’s CSR strategy.
Overall, the social responsibility of companies reflects a recognition that businesses have a role to play in creating a sustainable and just society. CSR initiatives not only contribute to positive societal impacts but can also enhance a company’s reputation, attract socially conscious customers, and improve employee morale and engagement. However, it’s important to note that the extent and nature of CSR activities can vary widely based on the industry, company size, and regional context.